Used Car News 6/19/23

Used Car News

6/19/2023

NIADA President-Elect Tormohlen Brings History of Service, Leadership to New Post

By Jeffrey Bellant

Gordon Tormohlen is president of Tormohlen’s Good People Automotive, a buy-here, pay-here dealership in Freeport, Ill. He is also president-elect of the National Independent Automobile Dealers Association.

USED CAR NEWS: Tell us about how you got into the car business.

Tormohlen: I was a ‘Boss’s kid.’ My dad had been in the car business since 1940 and had enjoyed a great career. After learning the business from a mentor, he became a Hudson dealer, then had an independent lot. In the ’60s, he managed for several dealers, including a stint managing a Ford store in Decatur, Illinois as the Mustang was introduced. Eventually, we moved to Freeport, where he and a partner purchased the Chevy store that he was managing. In 1983, he sold the store to his partner and he and I bought the Chrysler Plymouth Dodge dealership. My career began in 1973, when I was 13. My Dad started me for $.50 per hour to be a body shop apprentice and detailer.

Eventually, I held positions as display manager (lot rat), janitor, B grade technician, parts delivery, parts counterman, courtesy driver, service advisor, salesman, F&I manager, sales manager, and GM. About 2 months after I started working, I bought my first ‘car’, a 1967 Cushman Truckster that had been traded by the city on a police bid. I fixed it up, repainted it, and flipped it for a $210 profit. My Dad later said allowing me to buy it was the worst thing he ever did. By the time I could legally drive, I was on my 21st car. The bug had bitten! I later paid my way through Northwood

University by wholesaling almost 300 cars and trucks. Northwood was a fantastic experience for me, I graduated Cum Laude with a BBA, and three associate degrees, having also chaired the Northwood International Auto Show my senior year. During those first years, I learned

a lot. Including the way to earn the respect of my co-workers was to outwork them. I also learned how important customer relationships were to our success. As a result, the Chevrolet store became the third one in the nation to receive Chevrolet’s coveted Service Supremacy

IN THIS ISSUE:

• Auto Finance

• Safeguards

• Dealer Sentiment

Award -- and the Chrysler store got 19 consecutive Five Star Awards of Excellence.

UCN: What do you like about BHPH and what does it take to be successful at it?

Tormohlen: I entered the BHPH business in 1992, while still a Chrysler dealer. Rick Reeves had been asked to attend my 20 group meeting and teach us the basics of the BHPH business model. To me, it was simply another part of the broader preowned vehicle market, much like Retail, CPO, Trucks, Classics, and Wholesale. Each model has their own quirks and attributes. To be successful in BHPH it requires a plan – for cash acquisition, controlled spending and investment, and collections. Collections are the key. Selling a BHPH customer is easy, but getting paid is where dealers lose their shirts. Once the plan

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NIADA Preview

Tormohlen — Continued from page 1

is established, the dealer must constantly invest in and train the staff consistently to follow the daily requirements of the plan, build positive customer relationships, and remain compliant.

UCN: Independent dealers face as many challenges as any business due to supply issues, rising interest rates, etc. How are you navigating these challenges and do you have any advice?

Tormohlen: If you Google ‘U.S. Recession History,’ you’ll find that we’ve been enduring recessions since 1785. So far, in my career, I’ve seen recessions in ’73-’75, ’80-’82, ’90-’92, 2001, ’07-’09, and 2023. I am convinced that as long as policy makers try to manage our economy, this pattern will continue. That said, you don’t have to participate. I find it’s best not to spend your time worrying or whining about it. If you view it as a normal part of the long-term business cycle, you can view slower economic times as an opportunity to get better. Start by examining everything about your operation. Are your people efficient? Can you cut expenses? Are you managing your debt, or is it managing you? Simply put, what can you do TODAY to get better? I’d be remiss if I didn’t suggest you attend NIADA’s convention or join a 20 Group. You’d be amazed at what you may not know.

UCN: Tell us about why you decided to serve in leadership in your state and with NIADA?

Tormohlen: I learned from the age of 7 to volunteer on projects that help others, and I’ve benefitted greatly over the years by offering help to worthy organizations from MDA to Lions & Rotary clubs. Back in 2008, Bruce Eklund, who was the State Executive Director for Illinois, asked me to join his board. I was so honored. Several years later, as President-Elect, I attended NIADA Leadership training in Dallas. As usual, I spoke up and offered my thoughts on several topics. This apparently impressed Mike Linn and some of the NIADA Board members, and soon after I was asked to be Region III Vice President. Since then, I’ve served NIADA as Secretary, Treasurer, Senior Vice President, President Elect, and soon, President. It has been an incredible experience! I’ve gained much more than I’ve been able to give and learned so much rubbing shoulders with the best of our industry.

UCN: You will take the reins of NIADA at the same time as the association has a new CEO in Jeff Martin. Tell us what the focus of NIADA is as this new era starts.

Tormohlen: I love Jeff! He’s a hard working Dealer Driven guy. I think with Jeff at the helm, our first task is to stabilize relationships. I’ve learned, after seeing several CEO changes, that there’s always some concern about how the new CEO will do things. Our first task is to rebalance the association with dealers and vendors (our most important

stakeholders) in mind. That begins by having solid relationships with State Execs and Boards (our front line), then filters to Jeff and our awesome NIADA staff for support in legislative, education, and benefits… the end goal is to increase NIADA’s influence internally, among our member dealers, and externally, as the go-to source for all things Independent.

UCN: Tell us your view about lobbying and representing the NIADA to regulators?

Tormohlen: Jeff Martin has a fresh approach to this, which I like a lot. After a long hiatus, NIADA

returned to Washington several years ago, and thanks to the efforts of Shaun Peterson and Bret Scott, we are known in DC. During that period, NIADA worked to stop bad legislation, and become a helpful source of information on industry topics. Our legislative committee is currently tracking over 100 bills in Congress and state Houses across the nation. Jeff’s approach is to continue those efforts, but also build stronger relationships with ‘permanent’ Washington – that is, the employees at the regulatory agencies (FTC, CFPB, IRS, etc.). Building relationships with the folks who are tasked with implementing rules, who don’t have to get re-elected every other year, strengthens our influence.

UCN: When you encourage dealers to get involved, what are their typical responses?

Tormohlen: Most are very open to it…but I know I’m in trouble if I get a ‘yeah but…’. I’m often surprised that dealers are more interested in membership for the auction discounts they receive than all the other benefits they get. To me, membership is simply a bargain. A few years ago, we began to track the dollar value we derive from our membership… last year, we netted over $24,000! That didn’t include legislative support or educational opportunities! The key question is ‘are you a participant in the market, or a bystander?’

UCN: Anything else you’d like to tell our readers or NIADA members?

Tormohlen: We’re all entrepreneurs. We set out chasing our dreams, and in the process, we provide for those we love, our employees and their families. Our customers willingly give us their hard earned money because the value of the vehicles, services, and treatment we provide is worth more. This happens thousands of times per day across our nation, and thus, our nation succeeds. Many will see that you own your own business and wish they were as lucky as you. The beauty of the USA is they can be– IF they are willing to invest, take the risk, put in the hours, and work as hard as you do. You’re awesome! Thank you for driving our nation forward.

Photo courtesy of NIADA STANDING FIRM: Gordon Tormohlen, NIADA’s President-elect, is shown near the Capitol during NIADA’s National Policy Conference (left) and at an industry conference (above).

Auto Finance

Used Values, LTVs Dip in Latest Report

By Jeffrey Bellant

Experian’s State of the Automotive Finance Market Q1 released on June 1 showed franchise dealers gaining used market share while used subprime loans continue near record lows.

The report, prepared by Melinda Zabritski, Experian’s senior director of automotive financial solutions, showed that more than 52% of used car transactions took place through franchise dealers, compared to 50% during the same time last year.

Although the average amount financed for used loans slid to $26,420 from $28,010 last year (Q1), the average interest rate shot up to more than 11% from just over 8% Q1 2022.

This was reflected in the average used monthly payment which rose to $516, from $505 this time last year and $414 in 2021.

The average loan term was over 67%, slightly lower than 2022.

The report showed that even as used loan amounts fell across all credit segments, payments rose with even Super Prime customers seeing the average used loan monthly payment rise $19 compared to $16 for Prime loans and less than $9 for the other segments.

Values and loan-to-value (LTV) amounts fell for used vehicles. Used values fell to $25,603, nearly $3,000 less than 2022.

As rates rise for used loans, term lengths increased for lower scoring segments.

For example, rates for Deep Subprime consumers were nearly 62 months and Subprime hit nearly 66 months.

The average rate for Deep Subprime consumers was more than 21% while Subprime topped 18%. Prime used loans were 8.75% and Super Prime loan rates averaged 3%.

Another trend is the rise in shorter term used vehicle loans. The per-

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centage of loan terms 85+ months dropped from 1.23% to 1.07% while the percentage of 73- to 84-month loans dipped 1%. The percentage of 1-48 month loans rose to 11% while 49-60 month loans topped 18%, an increase of nearly 1%.

Despite the increase in the average new vehicle loan amount continuing to level out, many prime and super prime consumers returned to the used vehicle market in Q1 2023. Prime consumers made up 42.41% of used vehicle financing during the quarter, up from 40.97% the previous year, while the percentage of super prime consumers increased from 11.43% to 13.60% over the same period.

“The industry continues to keep a watchful eye on some of the inventory challenges and rising vehicle prices, as it’s impacted consumer purchasing behavior,” said Zabritski. “We’re seeing consumers bring more cash and trade-in value to the transaction in hopes of minimizing the amount of interest they’d have to pay on their loans.

“Additionally, with the combination of fewer new vehicles on dealership lots and high prices, in-market consumers are choosing used vehicles as another way to control vehicle costs.”

The report also showed more consumers are shifting back to financing used vehicles. More than 46% of Super Prime consumers financed used in Q1, along with nearly 64% of Prime consumers. The largest percentage of used financing customers fell into the Deep Subprime category at 96%.

Nearly 40% of used car loans were made through buy-here, pay-here dealers, just under 20% were obtained through credit unions, 14.38% were made through banks and 26% were obtained through finance companies.

Credit unions have continued to be the big player in financing vehicles.

The state with the largest percentage of used-car loans was Tennessee while the state with the lowest percentage of used loans was New York at just under 64%.

Outstanding loan balances grew 8.40% year-over-year, reaching $1.4 trillion.

The report also showed delinquencies hare risen past pre-COVID levels.

The percentage of loans 30-days delinquent in Q1 2023 hit nearly

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FTC Safeguards Rule Arrives – Are You

By Jeffrey Bellant

The long-awaited revision of the Safeguards Rule became official on June 9.

The auto industry got some reprieve last year when the Federal Trade Commission extended the deadline for compliance from January to this month.

Dealers who aren’t in compliance must play catch-up.

The Safeguards Rule requires nonbanking financial institutions, such as mortgage brokers, motor vehicle dealers, and payday lenders, to develop, implement, and maintain a comprehensive security program to keep their customers’ information safe.

One change is that dealers must have a written risk assessment that identifies security risks – internal and external – confidentiality, and integrity of customer information.

Dealers need to look at their systems for handling consumer information along with paper and physical records. Dealers must identify risks to the systems, evaluate the adequacy of existing controls for addressing risks and identify how these risks can be mitigated.

Dealers must name an individual who is qualified to head up your information security program. Qualifications will depend on the size and complexity of a dealer’s information system. The individual must have some level of information security training and knowledge. It could be practical knowledge, a degree or some certification, such as an IT provider. The individual must report in writing, at least annually, to the dealer’s board of directors or equivalent concerning the businesses’ Safeguards program and effectiveness.

Also, all customer data must be en-

crypted at all times.

Several other requirements are also part of the revised Safeguards Rule and dealers should consult with their attorney or a compliance company for complete information.

“I can see the FTC holding a dealer, or two or three, accountable for not complying with that new rule,” said Eric Johnson, a partner at the Hudson Cook law firm, when the

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Photo Courtesy of Ignite Consulting Partners

NEW RULE: Steve Levine of Ignite Consulting Partners leads a group at an automotive conference. He has been urging dealers to comply with the new FTC Safeguards Rule that went into effect June 9.

Auto Theft Bill Approved

By Jeffrey Bellant

Colorado Gov. Jared Polis signed bipartisan legislation into law to help prevent auto theft and ensure that offenders are held accountable.

The bills were signed June 2 and the laws go into effect July 1.

State lawmakers overwhelmingly passed two bills; SB23097 on Motor Vehicle Theft and Unauthorized Use, along with SB23257, the Auto Theft Prevention Cash Fund.

The Colorado Independent Automobile Dealers Association (CIADA) supported the bills, said David Cardella, the group’s chief executive officer.

The signing of SB23-097 into law will make car theft a felony.

The current law criminalizes auto theft as “aggravated motor vehicle theft in the first degree” and “aggravated motor vehicle theft in the second degree”.

The penalties for both aggravated motor vehicle thefts are based on the value of the vehicle or vehicles stolen.

The new law changes the term of the offense “aggravated motor vehicle theft” to “motor vehicle theft”.

The elements for motor vehicle theft in the first degree and second degree are changed and motor vehicle theft in the third degree is created.

The penalties for motor vehicle theft are no longer based on the value of the vehicle or vehicles stolen.

For example, under the new law, stealing a $2,000 car or a $20,000 car will be treated the same,.

Motor vehicle theft in the first degree is a class 3 felony, motor vehicle theft in the second degree is a class 4 felony, and motor vehicle theft in the third degree is a class 5 felony.

The bill creates the offense “unauthorized use of a motor vehicle” and makes it a class 1 misdemeanor, or a class 5 felony for a second or subsequent offense.

This provision in the new law lessens the penalty for unauthorized use of a vehicle, for cases like youth joyriding.

But the law will make it easier to prosecute someone who is caught knowingly driving a stolen car.

Cardella explained that previously, police had to prove that the suspect had actually stolen the car.

In some cases, the car could have had evidence of a tampered ignition but unless the suspect was caught in the act, they might avoid being charged.

The other bill will appropriate $5 million to the Colorado Auto Theft Prevention Authority (CATPA).

The group’s mission is to deter and reduce vehicle theft and insurance fraud through a statewide cooperative effort of generating funds to support law enforcement, prosecution and public awareness through a partnership between industry and state government.

Cardella, who is a member of CATPA, acknowledged the work of CATPA’s Program Director Robert Force and its lobbyist Michael Honn.

“It was really a pretty big deal,” he said.

Although this wasn’t CIADA’s bill, Cardella also credited the work of the group’s lobbyist, Edie Busam for her efforts behind the scenes.

Auto theft has declined in Colorado by more than 20% since last year, and Polis said these laws will help continue that trend.

“Every Coloradan deserves to feel safe in their homes and their communities, which is why one of my top goals is to make Colorado one of the 10 safest states in the country,” Polis stated in a release announcing the signing of the bills.

“Today’s action is part of our ongoing work to improve public safety and make sure Coloradans can thrive in safe and healthy communities.”

Gov. Jared Polis

Overall dealer sentiment in the U.S. improved slightly in Q2 2023, according to the quarterly Cox Automotive Dealer Sentiment Index released June 7.

The current market index is now at 45, up from 43 in Q1 but still below the threshold of 50, indicating that more dealers see the current auto market as weak than see the market as strong. The Q2 report is the fourth consecutive with dealer sentiment below the 50 threshold. Both franchised and independent dealers feel the market in Q2 is stronger than in Q1.

The forward-looking market outlook index declined in Q2, falling from 52 to 47, suggesting a majority of auto dealers now feel the market in the next three months will be weak, not strong. Independent dealers, who sell only used vehicles, have a more negative view of the market for the months ahead.

“Our latest dealer sentiment index clearly illustrates how the market has shifted in the past year,” said Cox Automotive Chief Economist Jonathan Smoke. “The new-vehicle market’s most acute inventory issues are in the rearview mirror now. Dealers are now facing an uncertain economy and high loan rates that are keeping many would-be buyers on the sidelines.”

Auto dealers continue to view, not only the market as weak, but also the economy. One year ago, the current U.S. economy index score was 50, indicating dealers were mostly neutral in their views. Now, a majority of dealers view the economy as weak. The survey indicates that most dealers feel the costs of running their dealerships continue to be an issue, and high interest rates continue to be a drag on business.

According to the latest survey, dealership profits continue to slide

after peaking in 2021. In Q2, the profit index dropped to 41, marking the seventh straight quarterly decline. On the upside, dealers indicate customer traffic was stronger in Q2 than in Q1.

Inflation, interest rates, costs of operation and the economy continue to weigh on dealers. Both groups also are feeling more pressure to lower prices to stimulate sales. The price pressure index declined slightly in Q2 to 58 but is up from 41 a year ago when interest rates were lower, inventory was tighter, and most dealers felt less pressure to lower prices. The used-vehicle sales environment, conversely, is viewed as poor by most automobile dealers in the U.S. At 42, the index score is down from 47 a year ago and near an all-time low. Only Q2 2020 was lower. Independent dealers view the used-vehicle market as particularly weak; franchised dealers are more

positive about the market. Both groups describe used-vehicle inventory levels as declining quarterover-quarter.

When asked about factors holding back business, the Economy (55%) and Interest Rates (53%) are the top two factors cited by both franchised and independent dealers. The Economy and Interest Rates were also the top two in Q1, although the order has switched, with the Economy now in the top spot. Limited Inventory was the leading factor one year ago and has now fallen to the third most-often mentioned factor, with 44% of dealers noting Limited Inventory as a top factor.

In Q2, Credit Availability for Consumers increased significantly quarter over quarter and year over year as a factor holding back business. Thirty percent of dealers indicated Credit Availability is a challenge in the Q2 survey, up from 26% in Q1.

Compliance

6/19/2023

State’s ‘Health Data’ Act Could Apply to Car Dealers

By Eric D. Mulligan and Webb McArthur*

House Bill 1155, known as “My Health, My Data Act,” was signed into law by Washington Gov. Jay Inslee on April 27, 2023. While the purpose of the law is to limit the sharing of consumers’ health care data, including data relating to sexual and reproductive health and gender-affirming care, the law is broad enough that some of its provisions will apply to car dealers, banks, and auto finance companies.

The MHMDA, by its terms, applies to consumer health data. The MHMDA defines the term “consumer health data” to include precise location information that could reasonably indicate a consumer’s attempt to acquire or receive health services or supplies. The MHMDA defines the term “precise location information” to mean “information derived from technology, including,

but not limited to, global positioning system level latitude and longitude coordinates or other mechanisms, that directly identifies the specific location of an individual with precision and accuracy within a radius of 1,750 feet.”

As a result, if a vehicle has a location monitoring or tracking device, the information from that device could be subject to the MHMDA to the extent that it reveals a consumer’s attempt to access health care (for example, if the information shows that the consumer’s vehicle is or has been at a doctor’s office). In practical terms, any vehicle with a tracking device may collect data subject to the MHMDA and therefore cause the holder of the associated credit contract to be subject to the MHMDA.

The definition of “consumer health data” includes additional categories of information that could cause the

seller of a vehicle or the holder of a vehicle-secured credit obligation to be subject to the MHMDA. For example, the term includes “genetic data,” which the MHMDA defines to mean “any data, regardless of its format, that concerns a consumer’s genetic characteristics.” The term also includes “biometric information,” which the MHMDA defines to mean “data that is generated from the measurement or technological processing of an individual’s physiological, biological, or behavioral characteristics and that identifies a consumer, whether individually or in combination with other data.” The definition of “biometric information” expressly includes “imagery” of the face, and, unlike some other definitions, it does not exclude photographs. Interpreted broadly, the definition of “consumer health data” could include data about the consumer’s sex, height, and other physi-

cal descriptors, plus photographs of the consumer’s face, whether or not the entity collecting the information uses it to provide health care to the consumer.

The MHMDA excludes data subject to the Gramm-Leach-Bliley Act, the Fair Credit Reporting Act, and the Health Information Portability and Accountability Act, as well as de-identified data under 45 C.F.R. Part 164.

The MHMDA requires a regulated entity to disclose certain information in its consumer health data privacy policy, including the categories of consumer health information that the entity collects, the categories of sources from which it collects the data, why the entity collects the data, how the entity will use the data, with whom the entity will share the data, and how a consumer may exercise his or her rights under

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Automotive Finance

Experian — Continued from page

1.9%, topping Q1 of 2022 and 2021, but just under the 2.04% of Q1 2020. Loans 60 days delinquent rose to 0.76% in Q1, the highest Q1 60-day delinquency rate in five years.

The 60-day delinquency rate was at 0.56 in Q1 of 2021.

The current 60-day used loan delinquency rate for independent dealers is 1.39%, nearly double the franchise rate of 0.79%.

On the new car side, the share of leasing fell to 18.23% in Q1, from 21.67% a year ago and nearly 28% in 2021.

On the used vehicle side, the lease market makes up 11.18%, up from 10% in 2022 and 9.67% in 2021.

Captives (26.59%) secured the largest share of total financing in Q1 2023, followed by banks (26.03%), credit unions (24.53%), finance companies (12.11%) and BHPH/others (10.74%).

Credit scores for new car loans

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rose to 742 while used-car loan credit scores rose to 677.

SUVs and wagons kept the lion’s

pickups dipped to 16.51% from 17.26%.

Prime+ and Prime on the new-

of new vehicle leasing are Michigan at nearly 56% and New York at 55.5%.

The No.1 lease make is Honda at nearly 10.5% of the new lease market, followed by Chevrolet (8.7%). Nissan (8.02) and Toyota (7.53).

The top leased models are the F-150 (2.49%), Equinox (2.33%), Silverado 1500 (2.3%) and Rogue (2.2%).

Two sedans also made the list; the Civic and Accord, both at 1.79%.

The report showed leasing terms have risen to $612 at the Subprime level to $571 for Super Prime customers.

Lease terms, meanwhile, have dipped a little.

share of new-car financing at nearly 61% with sedans rising slightly to 17.77%.

The share of new financing for

vehicle side snatched 82% of the financing share, with Super Prime rising more than 3%.

The states with the greatest share

Average subprime lease terms were at less than 36 months while the Super Prime lease customers saw lease terms fall below 35 months.

Compliance

Safeguards – Continued from page 5

rule change was first announced.

Adam Crowell, president and general counsel for ComplyNet, discussed the issue during the National Auto Auction Association Convention & Expo last fall.

The FTC noticed there was “data breach, after data breach, after data breach,” Crowell said. “And the FTC was taking enforcement action after enforcement action after enforcement action.”

Every time they did it, they would have the same sort of framework for those who suffered the data breach. So, the FTC took the criteria that they had already expected and just put it in writing as a revised rule, Crowell said.

“The fines (for violating the rule) are very significant that could be up to $46,517 per customer record,” he added.

The FTC also has a Section 5 rule,

which can apply to anyone who has consumer information, so the FTC has gone after those businesses. Crowell pointed out it went after an advertising company for covering up a data breach.

Steve Levine, of Ignite Consulting Partners, has held several webinars and presentations, warning his clients and others about being in compliance with the new rule.

“It seems like I’ve been writing and speaking about the FTC’s Safeguards Rule for years now,” he recently wrote. “Quite frankly, I think my audience is tired of hearing about it and if I’m being perfectly honest, I’m a bit worn out discussing it. After all, how many different ways are there to say, ‘take this seriously and make sure you are doing what is expected when it comes to protecting customer information?’”

Levine said he keeps hearing about dealers who are not taking the issue

seriously.

“A used car dealer called me out of the blue after discussing the subject at an industry meeting. For the next thirty minutes I listened patiently as he recited reason after reason why he’s not going to do anything when it comes to Safeguards,” Levine said.

The excuses range from, “my business isn’t big enough to be a target,” to “the cost of the fine would be less than all the time and money I’d have to spend.”

Levine said he shared a story involving a business that had to defend itself against claims which were based on existing laws, not even the bigger changes coming with the Safeguards Rule.

“It started with a demand letter from a former credit applicant,” he said. “This person had applied for financing at this dealership about six months previously and was denied. Thereafter, she alleges that her

identity was stolen, which caused her all sorts of headaches and inconvenience.”

The resulting lawsuit has chewed up a lot of this client’s time and expenses and there is still a concern the matter could become a class action suit, Levine said.

The new rule is in effect, whether a dealer ignores it or not.

“Some of you have already started down your Safeguards journey and are making progress, some are going to read this and choose to forget about it, and some of you may take this as a call to action,” he said. “You are all business people that can evaluate risk and decide your own comfort level.

“What you can’t do, though, is deny that the risk does exist. The ball is in your court. Do you want to play offense and be proactive, or do you want to play defense? Either way, you’re already in the game.”

Compllance Health Data — Continued from page

the MHMDA.

The regulated entity may not collect, use, or share consumer health data other than as its privacy policy indicates until it has obtained the consumer’s affirmative consent.

The regulated entity must obtain consumer consent to collect or share consumer health data, unless the collection or sharing of the data is necessary to provide a product or service that the consumer has requested.

The MHMDA also gives a consumer the right to know what consumer health data a regulated entity collects, for what purposes, and with whom the entity shares the data.

The consumer may withdraw his or her consent to the collection, use, and sharing of consumer health data or request that the entity delete the data.

The MHMDA requires an entity to restrict access to consumer health data and to require compliance with the MHMDA in its contracts with data processors.

Additionally, the MHMDA requires a consumer to give affirmative consent before an entity sells his or her consumer health data.

And the entity may not require the consumer to give that consent as a condition of providing a good or service.

The MHMDA applies to a regulated entity. The MHMDA defines the term “regulated entity” to mean any legal entity that:

• conducts business in Washington or produces or provides products or services that are targeted to consumers in Washington; and

• alone, or jointly with others, determines the purpose and means of collecting, processing, sharing, or selling of consumer health data.

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The term does not include government entities, tribal nations, or data processors acting on behalf of government entities.

A regulated entity that satisfies either of the following criteria is a “small business” under the MHMDA:

• the entity collects, processes, sells, or shares consumer health data of fewer than 100,000 consumers during a calendar year; or

• the entity derives less than 50 percent of gross revenue from the collection, processing, selling, or sharing of consumer health data and controls, processes, sells, or shares consumer health data of fewer than 25,000 consumers.

Most provisions of the MHMDA will apply to regulated entities other than small businesses beginning March 31, 2024, and to small businesses beginning June 30, 2024.

A provision prohibiting the implementation of a “geofence” around an entity that provides in-person health care services to track consumers takes effect on July 23, 2023. Dealers and creditors that offer GPS monitoring and tracking on vehicles sold and financed should review this new law to see whether and how they might have to update their information privacy policies and notices.

*Eric D. Mulligan is a senior associate in the Maryland office of Hudson Cook, LLP. Webb McArthur is a partner in the Washington, D.C., office of Hudson Cook, LLP.

© CounselorLibrary.com 2020, all rights reserved. Based on an article from Spot Delivery. Single print publication rights only to Used Car News.

Retail Markets

CALIFORNIA

Frank Blair, owner, Valley Auto Center, Lancaster, Calif.

“I’ve been in business 50plus years, all in the San Fernando Valley. I want to put to rest the rumor that the first thing I took in trade was a horse.

“I’ve tried recently to bring down the size of my inventory. We had 120 vehicles and now we’re at about 90. There are 30 in different stages of reconditioning.

“I’m having issues with parts, body shop and mechanics. I know other people are, too. So, the reconditioning process is much slower than I would like it to be. I tried having my own mechanic and it was a disaster.

“The supply of nice, clean, ready-to-go cars is always limited. That’s why I cherish the reconditioning people I use.

“We’re spending a lot on smog control. We’re running into vehicles that are missing catalytic converters or the converters are failing, and those are just stupidly expensive, maybe $3,000.

California law says that you can’t use aftermarket catalytic converters.

“The month we just finished was 20 sales. Prepandemic we were at 30-34. But our gross has increased quite a bit, so it evens out.

“One of my finance companies, a great partner for us, is Credit Acceptance Corp. They were (during COVID) financing people who were on unemployment. What we’re seeing now is increased defaults.

“Our truck sales have slowed up a lot. The big thing right now is anything with a four-cylinder, like the Ford Focus. Anything with an eight-cylinder is hard to

sell. Our gas prices are the highest in the country.

“I do have a couple hybrid and electric-type vehicles. I’m kind of experimenting with those.

“I don’t go to auctions in person, I do it online. It has saved my body so much; I have back issues. I’m sure that has a lot to do with me standing on concrete.

“There’s a new auction I like called EBlock. They’ll give me the tread depth on the tires.

“Just over a year ago I purchased this property for $1.2 million, it’s a loan of course. I had the opportunity because of Credit Acceptance. I bought the property from Larry Carlon. He was a famous California dealer who retired.

“The newer the better for cars. We have a sign out front that says: ‘Most cars under $9,995.’ Obviously, some cars

go over that. In my area of Los Angeles County, it’s a lower average income.

“One of the last cars I sold was a 2010 Toyota Tundra Crew Cab with 183,000 miles. I sold it for $15,000 out the door. It was a cash deal, they ground me down.”

OREGON

Siamak Lofti, owner, Siamak’s Car Company, Woodburn, Ore

“We opened in April 2000.”

“We’ve kind of stayed away from doing business online. You’ve got to see and smell the cars. No matter how good the pictures are that they send you, you still have to see the car. A picture won’t show the smell of cigarettes. We like Manheim Portland.

“Our inventory is usually just under 150. Last year our average was 52 sales a month.

“We’re switching to more truck sales. So, we sell more domestics than imports. We’re located right on I-5 (south of Portland).

“Our down payments have gone up. People are trying to put down $2,000. Seventytwo months is normal.

“We advertise on the radio three months out of the year. We do all the websites obviously. We advertise on TV and newspapers, too.

“Reconditioning costs have gone up for sure. We average $1,400 per vehicle.

“We try to keep our vehicles seven years or newer, and around 80,000 miles.

“My advice to any dealer is to just do what you do best, stay out of the news and keep moving forward clickety-clack.

“The last car we sold was a 2018 Chevy Silverado, 55,000 miles, and we sold it for $34,995.”

Compiled by Ed Fitzgerald

ADESA Boston

July 9, 23

508-626-7000

ADESA Charlotte

July 1, 15, 29

704-587-7653

ADESA Chicago

July 23

847-551-2151

ADESA Cincinnati/Dayton

July 27

937-746-4000

ADESA Golden Gate

July 27

209-839-8000

ADESA Indianapolis

July 13, 27

317-838-8000

ADESA Kansas City

July 13, 27

816-525-1100

ADESA Lexington

July 8

859-263-5163

ADESA New Jersey

July 1, 15, 29

908-725-2200

ADESA Salt Lake

July 20

801-322-1234

ADESA Tulsa

July 9

918-437-9044

ADESA Washington DC

July 21

703-996-1100

Columbus Fair AA

July 7, 28

614-497-2000

Manheim Atlanta

July 1, 14, 15, 21, 29

404-762-9211

Manheim Dallas

July 7, 20, 21

877-860-1651

Manheim Denver

July 21

800-822-1177

Manheim Detroit

July 1, 15, 29

734-654-7100

Manheim Fredericksburg

July 8, 22

540-368-3400

Manheim Milwaukee

July 7, 21

262-835-4436

Manheim Minneapolis

July 14

763-425-7653

Manheim Nashville

July 6, 28

615-773-3800

Manheim Nevada

July 2, 30

702-730-1400

Manheim New Jersey

July 7, 21

609-298-3400

Manheim New Orleans

July 7, 21

985-643- 2061

Manheim Orlando

July 6, 13, 20, 27

800-822-2886

Manheim Palm Beach

July 7, 8

561-790-1200

Manheim Pennsylvania

July 1, 2, 9, 15, 15, 23, 29, 30

800-822-2886

Manheim Phoenix

July 8, 22

623-907-7000

Manheim Pittsburgh

July 21

724-452-5555

Manheim Riverside

July 6, 8, 13, 20, 22

951-689-6000

Manheim Seattle

July 28

206-762-1600

Manheim Southern California

July 1, 15, 29

909-822-2261

Manheim Tampa

July 1, 15, 29

800-622-7292

Manheim Texas Hobby

July 1, 15, 29

713-649-8233

Southern AA

July 21

860-292-7500

Manheim Atlanta

July 14

404-762-9211

Manheim Dallas

July 20

877-860651

Manheim Milwaukee

July 21

262-835-4436

Manheim Nashville

July 28

615-773-3800

Manheim Nevada

July 2, 30

702-730-1400

Manheim New Jersey

July 21

609-298-3400

Manheim Orlando

July 13, 20

800-822-2886

Manheim Palm Beach

July 7

561-790-1200

Manheim Pennsylvania

July 1, 15, 29

800-822-2886

Manheim Riverside

July 8, 22

951-689-6000

Manheim Seattle

July 28

206-762-1600

Manheim Atlanta

July 14

404-762-9211

Manheim Dallas

July 20

877-860-1651

Manheim Milwaukee

July 21

262-835-4436

Manheim Nashville

July 28

615-773-3800

Manheim Palm Beach

July 7

561-790-1200

Manheim Pennsylvania July 1, 15, 29

800-833-2886

Manheim Riverside

July 8, 22

951-689-6000

Manheim Seattle

July 28

206-762-1600

ADESA Boston July 9

508-626-7000

ADESA Charlotte

July 1, 29

704-587-7653

ADESA Salt Lake

July 20

801-322-1234

Columbus Fair AA

July 28

614-497-2000

Manheim Dallas

July 7

877-860-1651

Manheim Denver

July 21

800-822-1177

Manheim Fredericksburg

July 22

540-368-3400

Manheim New Jersey

July 7

609-298-3400

Manheim Orlando

July 13

800-337-8491

Manheim Pennsylvania

July 2, 16, 30

800-833-2886

Manheim Pittsburgh

July 21

724-452-5555

Manheim Seattle

July 28

206-762-1600

Manheim Southern California

July 1, 15, 29

909-822-2261

Southern AA

July 21

860-292-7500

Manheim Atlanta

July 21

404-762-9211

* The tradename Jaguar Financial Group and the Jaguar logo are owned by Jaguar Land Rover North America, LLC (JLR) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase.

* The tradename Land Rover Financial Group and the Land Rover logo are owned by Jaguar Land Rover North America, LLC (JLR) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase.

* The tradename Subaru Motors Finance (SMF) and the Subaru logo are owned by Subaru of America, Inc. (Subaru) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase).Auto finance accounts are owned by Chase.

* The tradename Maserati Capital USA and the Maserati logo are owned by Maserati North America, Inc. (Maserati) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase.

* The tradename Aston Martin Financial Services and the Aston Martin logo are owned by Aston Martin Lagonda of North America Inc. (Aston Martin) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase.

Neither JPMorgan Chase Bank, N.A. nor any of its affiliates are affiliated with ADESA, Inc. or Manheim, Inc. Each auction is solely responsible for their website content, sales events, promotions, fulfillment and operation of the auction.

©2023 JPMorgan Chase Bank, N.A. Member FDIC 7/23

Wholesale Markets

OKLAHOMA

Kyle Clopton, general manager, Oklahoma Auto Exchange, Oklahoma City, Okla.

“We’ve always been franchise-store dominant, which is still our main focus. But we’re diversifying our consignors some, so it’s been really good.

“We’re running between 650 and 700 cars a week. We’ve been actually able to maintain and even grow over the past 12 months.

“I know a lot of people are seeing lower consignment numbers. But we’re actually up in consignment and the number of vehicles sold.

“We’re up about 16%, so it’s been a really good start to the year.

“Sales percentages this week, I think, were 66%. They’ve been consistent between 64% and 67%. So, it’s been good, better than we

deserve.

“We draw between 275 and 375 (bidders) weekly.

“Our average sales price is about $9,000. For that price point, a lot of dealers prefer to put their hands on it and see it in person. But our online presence has also grown. We have been 60 and 75 online buyers weekly. It’s something we never considered but implemented during a two week period, when COVID started.

“Dealer consignment makes up about 70% of our business. That’s the focus my dad (Mike Clopton) started out the business with 19 years ago.

“But I think we are going to go to a dedicated fleet/ lease lane – commercial lane – probably in Q3 or Q4 this year. We’ve done a good job with the accounts we have, being able to grow them both locally and nationally.

I think the appetite is there from the dealers in Oklahoma City and the surrounding area. Our reach has grown as our consignment has grown and the quality of our consignment has improved.

“With the people that we have and the team that we have, we’d be really good in any business. We have people that are detail oriented and communicate well. That’s what matters to buyers and sellers alike.

“It’s what my dad built the business on.

PENNSYLVANIA

Clint Weaver, general manager, America’s Auto Auction – Harrisburg, Mechanicsburg, Pa.

“We just finished up a sale (June 8) that went pretty well, sold 63%. Can’t complain about that.

“We have seen an uptick in repossession the last couple

of months. Dealer consignment is still light.

“These (franchises) seem to be changing the way they sell, getting more into the used car market than they were the last few years, holding some of that stuff.

“Around here, some of the bigger dealer groups are buying up some of the independent-owned franchise stores.

“We recently ran just over 1,000, about 1,023. Before COVID, we’d probably be at 1,300 or 1,400.

“Another place the volume is off is with the off-lease companies. I think some of that inventory is down because people have transitioned to working from home and they don’t need a car on the road. Some of those aren’t getting leased out.

“But the truck and RV market – oversized equipment –

Compiled by Jeffrey Bellant

is what we are seeing a lot of and we still run it weekly for the lease companies.

“Then we do what we call a specialty sale at the end of the month where the dealers will run boats, RVs, motorcycles, big trucks and things like that. We even incorporate some classic cars into it.

“But it’s powersports, heavy trucks and equipment like backhoes, things like that. Then boats and RVs as well.

“We did a big one in the first week of April and ran about 300 that week.

“On an average end of the month sale, we’ll run 60 or 70.

“That first week of April we also had our 41st anniversary sale and had about 1,500 cars. So that was a big deal.

“We’re feeling good right now, just wish we had a little more inventory.”

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Tony Moorby

The view from the airplane window on the western approach to Heathrow Airport confirms your arrival in England. You couldn’t be anywhere else in the world. The ‘patchwork quilt’ of fields, outlined by hedges or stone walls tells of hundreds of years of agricultural activity.

In May it’s like Joseph’s coat of many colors; fresh, vivid greens compete with the astonishing yellow of oilseed rape blossoms (here we call the harvested oil Canola Oil – it sounds better). The shocking purple of lavender stands alone, unmatched by neighbors.

It’s a scene soon shattered by Heathrow Airport’s crazy business and the world becomes a blur of whizzing gray; the tarmac, luggage tugs, the planes themselves, the buildings with boring gray facades giving no clue

to what goes on inside, the buses, camouflaged, melt in and out of the alleyways, ginnels and snickets that make airport roadways into an inescapable maze.

The thronging masses hurriedly make their way to immigration – today a relatively painless exercise, lines reduced by technology, matching your physiognomy to an aging passport photo (facial recognition looming large) and on to the seemingly interminable wait for luggage.

If you’re lucky enough to have arrived with no prior connection, when luggage could just as well have landed in Lebanon as London, customs at Heathrow was totally unmanned – not a living soul stood by the stainless-steel tables to rifle through one’s underwear.

Then, after the muchawaited hugs and kisses of

greeters and family, comes the mind-bending labyrinthine puzzle of the English multi-story car park. The spaces are so tightly packed you couldn’t fit a cigarette paper between cars, let alone open a door, my aging girth not helping.

Driving a right-handdrive car with a stick after forty years requires mental and manual dexterity but it’s just like riding a bike. After paying the parking fee, worthy of a mortgage, you’re disgorged onto access roads where you may well disappear up your own exhaust pipe and end up on an even bigger parking lot –the dreaded M25!

What was originally designed in the ‘80s as an outer ring road around London, offering a 35-minute ride from Heathrow to the northern reaches of Surrey, now can take 2½ hours!

A couple of accidents had rendered the whole thing a parking lot. Google Maps offered alternatives at the next exit so we followed the Conga line through streets hitherto never discovered.

It’s been four years since I visited and the roads are in such terrible shape it would have been smoother to go off-road! I rented a car for the duration and the wheels bore testament to a rough life and when undertaken in my sister-in-law’s Mini, the prospect of bodily injury was never far away. Surrey is one of the richest counties in the UK but has the worst, least maintained roads in the whole country.

Over the course of my stay, I came to the observation that the motorist is treated as a societal pariah; parking is almost nonexistent and when it is, it’s outrageously expensive – a trip to the su-

permarket involves a multistory car park costing about a fiver for the stay. You then have to pay a pound to ‘rent’ a cart for shopping, rebated when it’s returned. It’s as though the town doesn’t want you there.

There’s much more to observe about the trip. Watch this space.

Tony Moorby